The cryptocurrency markets are bouncing back after a recent price crash triggered by significant liquidations and a decrease in buying pressure. Despite the bears dominating the market, Ethereum’s price remained steady around the key psychological level of $3000, instilling confidence among market participants. Additionally, the highly anticipated Fusaka upgrade has been successfully implemented on the mainnet. This upgrade aims to enhance state management efficiency and reduce network load during periods of high demand, which has already led to increased developer and user activity.
The Fusaka upgrade, while not a major milestone on the roadmap, has had two significant effects on Ethereum’s on-chain metrics. Firstly, it has made transactions more efficient, reducing delays during peak activity and encouraging continued on-chain engagement. Secondly, it provides better support for scaling tools, enabling developers to build L2 rollups and high-frequency applications in a smoother environment, leading to increased address creation and contract deployment.
For long-term investors, the Fusaka update adds another layer to the ongoing accumulation narrative. Large holders often accumulate before upgrades that improve user experience and reduce network friction, which is evident in the current scenario.
In other news, wallets holding 1,000–10,000 ETH accumulated around 450,000 ETH between November 18 and December 2, signaling renewed confidence among larger holders. This accumulation pattern historically precedes medium-term trend shifts, hinting at stronger fundamentals for Ethereum in the coming months.
The price of ETH has surpassed $3,215 and is approaching the crucial resistance zone of $3,350–$3,450. Breaking above this level would signify a structural shift in the trend and pave the way for a move towards $3,500, a level closely monitored by traders.
Technical analysis shows that the ETH price has hit the upper bands of the Bollinger and is displaying a bullish divergence. The Chaikin Money Flow (CMF) indicator is also incremental, indicating a significant influx of liquidity. These factors suggest that ETH may soon break the $3,500 barrier and target higher levels.
In conclusion, Ethereum’s improving on-chain activity, coupled with the accumulation by larger holders and the successful Fusaka upgrade, sets a strong foundation for upward price movement. With key resistance levels within reach, ETH may soon have the support needed to challenge the $3,500 mark.
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